Apple refuses to give Microsoft a discount on Office for iOS sales

Microsoft Office for iOS is expected to hit the App Store at some point in 2013. Office will be free to view documents, but if you want to start editing them on your iOS device you’ll need a subscription. Signing up for that subscription through your iOS device means Apple takes a 30 percent cut, but Microsoft isn’t happy about this and wants it changed.

Microsoft believe they are entitled to a discount because Office for iOS is seen as enhancing the platform. Apple doesn’t see it the same way, and will treat Microsoft just like any other developer. If Microsoft wants to sell Office subscriptions initiated on an iOS device, they have to pay the Apple commission.

Microsoft hit a similar roadblock with SkyDrive due to the fact iOS users could access a purchasing page to buy more storage space. This also incurs the 30 percent charge, but in that case Apple has been blocking the apps until the issue is resolved.

With Apple unwilling to budge it’s up to Microsoft to make a decision. Do they not try and sell Office for iOS and therefore don’t offer document editing capabilities? Or do they pay the 30 percent charge? If they accept the 30 percent cut, it could be we end up paying more just to cover the lost revenue.

I’m guessing Microsoft will continue to pressure Apple for a discount for as long as possible. Apple has very little incentive to cave in though, especially as Office subscription sales would be quite lucrative for them, too.